Wish they included a clock, don't you?? (me too)
Probably the easiest way to gage this is to start "counting" from either sunset or sunrise and wait until you've gotten pass "3" (save your game first before checking - going into town too soon can reset the whole quest clock).
I don't believe you have to empty their whole inventory - but if you have space to do so - better safe than sorry. Hopefully someone else will answer that particular question definitively!
Good Luck!
Wyv
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